Nokia reportedly in talks to buy Navteq

Finnish cell-phone maker is in discussions to buy the maker of navigation software, according to Wall Street Journal.

October 1 2007: 11:12 AM EDT

LONDON (CNNMoney.com) -- Nokia is buying U.S. navigation-software maker Navteq for around $8.1 billion, the world's largest mobile phone maker said Monday.

The deal has been approved by the boards of both companies, according to Nokia.

Under the agreement, Nokia (Charts) will pay $78 in cash for each Navteq (Charts) share, including outstanding options. Nokia shares fell nearly 3 percent in early trading, while Navteq edged downward.

Chicago-based Navteq maintains digital maps which it licenses to global positioning systems and Web sites. Founded in 1985, it has around 3,000 employees in 168 offices in 30 countries.

Nokia's President and Chief Executive Olli-Pekka Kallasvuo said "location-based services are one of the cornerstones of Nokia's Internet services strategy. The acquisition of Navteq is another step toward Nokia becoming a leading player in this space."